A new report published today claims that Apple is in the process of designing its own power management chips for the iPhone and that it’s eventually going to stop sourcing them from Dialog Semiconductor. One prediction suggests that Apple is going to meet almost half of the demand for the iPhone’s power management chips itself by next year. The other suggests that Apple’s own chips won’t be ready until 2019.
Dialog Semiconductor shares have predictably taken a hit after this report hit the wires. They’re down 17 percent. The company designs chips for iOS devices and the Apple Watch. Apple’s business accounted for 74 percent of its revenue last year.
For those who are unaware, power management chips are necessary to oversee functions such as charging, managing battery life, and power consumption.
The report from Nikkei Asian Review also mentions that Apple’s own chips will be the “most advanced” and that they will offer more power monitoring capabilities compared to competitors. This should, at least in theory, improve the battery life of devices that come with these chips.
Apple is reportedly going to rely on Taiwan Semiconductor to produce the chips. It’s one of the biggest chipmakers on the planet and it also produces Dialog’s chips.
Apple is yet to comment on the matter officially.